Berendina Micro Finance Institute Partners with NDB
Berendina Microfinance Institute (BMI), has initiated a new funding
partnership with the National Development Bank recently. This has been
the first borrowing which BMI had obtained from any commercial bank to
finance its loan portfolio.
BMI initiated negotiations with the NDB in April 2012. During this
period, NBD conducted an assessment study by visiting the BMI Head
Office and having discussions with the Board of Directors and Senior
Manages. BMI would be using this loan to finance the 4th cycle of
business development loans, which include loans or new business ventures
and enhancement of present business activities.
Chairman Dulan de Silva and Director Anura Atapattu endorsed the
offer on behalf of BMI in July 2012 at the NDB head office. The loan
amount Rs. 10 Million obtained under this facility with a repayment
period of five years, in catered through a special loan scheme for small
and medium enterprises.
BMI has started its operations in 2007, with the provision of credit
services to the rural and plantation communities. During past 5 years,
BMI has successfully obtained significant growth and client coverage in
terms of depth and spread of outreach without drifting from the original
mission of poverty reduction and providing prosperous living condition
for the low income segment of the population. Currently, BMI implements
its services in five districts, namely Anuradhapura, Kandy, Kegalle,
Nuwara Eliya and Trincomalee, through its 17 branches.
BMI has made a strong impact on Microfinance activity by opening its
branches in remote areas such as Serunuwera, Thambalgama and
Kahatagasdigaya. It made significant progress on its borrowers and
improving their businesses by providing training in business skills like
marketing, account management, costing and also skills improvement
trainings in a range of fields. BMI is the first MFI to provide loans to
plantation workers through the plantation cooperatives managed by
plantation companies. As of end July, 2012 there are 2095 clusters with
47,742 active borrowers and an outstanding loan portfolio of Rs.
954,417,532.
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